The Short Answer
Mueller Industries (MLI) is qualitatively HALAL, but its current quantitative result fails. The March 28, 2026 filing shows liquidity and receivables-plus-cash above the examined asset-based limits.
Copper-tube, brass-rod, and metal-fittings manufacturing is generally permissible at the activity level. The current screen shows debt/assets of 0.58%, liquidity/assets of 35.59%, receivables-plus-cash/assets of 52.07%, and disclosed interest income of 0.99% of quarterly revenue.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-28; calculated 2026-07-15.
22.824 / 3,942.363
1,403.041 / 3,942.363
2,052.856 / 3,942.363
11.87 / 1,193.005
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 35.59%, above the examined 33.333% limit, and receivables-plus-cash/assets is 52.07%, above the examined 50% limit; debt/assets is 0.58% and disclosed interest income is 0.99%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets and receivables-plus-cash/assets are above the examined MSCI limits; debt/assets and disclosed interest income remain below their limits.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 35.59%, above the examined Malaysia limit. This is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the total-assets liquidity and receivables screens already fail.
Business-activity disclosure
Mueller manufactures copper, brass, aluminum, plastic, piping and climate/HVAC components. The core manufacturing activity is generally permissible, while downstream end-use allocation remains qualitative.
Limitation: The filing does not provide a universal prohibited-revenue numerator across product and customer categories.
Purification
The filing discloses $11.870 million of interest income, but no scholar-specific purification instruction or universal prohibited-revenue numerator is provided.
Inputs, assumptions and primary sources
- Amounts are USD millions from Mueller Industries' March 28, 2026 Form 10-Q.
- Mueller reports no debt; the $22.824 million total combines current and noncurrent operating lease liabilities for a conservative debt perimeter.
- Cash is $1,382.345 million and short-term investments are $20.696 million.
- Receivables are $670.511 million, quarterly revenue is $1,193.005 million and disclosed interest income is $11.870 million, approximately 0.99% of revenue.
- Copper, brass, aluminum, plastic, piping and climate products are generally permissible, but no universal prohibited-revenue numerator is asserted.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Mueller's Business Activity
Mueller Industries operates through three reporting segments:
- Piping Systems: Copper tube, copper fittings, line sets, and pipe-nipples
- Industrial Metals: Brass rod, impact-extrusions, and forgings used in valves and fittings
- Climate: Commercial-and-residential HVAC-and-refrigeration components, coils, and assemblies
These are general-purpose metal-and-industrial-products manufacturing businesses — the company makes and sells physical products and earns manufacturing margin. This is permissible at the activity level.
Concerns to Be Aware Of
1. Net-Cash Balance Sheet
Mueller reports no debt and only $22.824 million of operating leases, but the low debt does not offset the current liquidity and receivables screens.
2. Metal-Price Sensitivity
Raw-material (copper, brass, aluminum) input-cost volatility directly affects margins, and earnings can fluctuate with metal-price spreads. This is a business-cycle and input-cost consideration rather than a Sharia screen concern.
3. Minor Interest Income
The filing discloses $11.870 million of interest income, or about 0.99% of quarterly revenue. It is a screen input, not a scholar-specific purification instruction.
Filing-Based Ratios (March 28, 2026)
Based on Mueller's latest Form 10-Q:
- Debt / assets: 0.58%, below the examined limit.
- Cash + interest-bearing securities / assets: 35.59%, above the examined 33.333% limit.
- Receivables + cash / assets: 52.07%, above the examined 50% FTSE-style limit.
- Interest income / revenue: 0.99%, below the examined 5% benchmark.
- Prohibited-activity revenue: Not disclosed; activity result is incomplete.
Methodology Interpretation
The known business is generally permissible, but the current liquidity and receivables-plus-cash ratios fail the examined asset-based limits. The overall result is fail; this is a transparent methodology comparison, not an official classification.
Bottom Line
Mueller Industries (MLI) has a generally permissible core business, but its current filing-based screen is not passing because liquidity/assets is 35.59% and receivables-plus-cash/assets is 52.07%.
For Muslim investors seeking industrial-materials exposure, MLI sits alongside other halal-screened names like Watts Water (WTS) and Reliance Steel-style metal businesses.
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